Many people like to put gold in their financial portfolios, though any precious commodity may be an investment. Diamonds are not only more valuable than gold, but are small enough to be kept at home and easily transported in an emergency.
In general, the value of diamonds has risen in the last 10 years, with few slips of price. Diamond prices increases about 15% average each year, and jewelers say you can expect to see price increases ranging from 10 percent to 20 percent depending on the quality of the diamond.
Various factors influence the price of diamonds, most notably supply and demand, and the state of the global economy. The last diamond mine was found 15 years ago. It takes up to 10 years for a mine to get to full production, so the demand can sometimes lag behind supply. Diamonds have retained their value during recessions because the value of precious commodities is often independent of government laws.
Despite popular belief, diamonds don’t have to be large to be valuable, as they are not just used for jewelry, 80% of diamonds are used for industrial purposes. In fact they have significant industrial use. Polishing, cutting and even as material in some computer chip production. Diamond powder is valuable in grinding down or polishing ceramics and metals, and may last longer than other materials in that task.
Diamonds don’t need to be bought at jewelry stores. Lately many community gold buyers have started taking diamonds, usually with a limit of 2 carats. The price of a 3 carat, triple-A rated diamond has gone up 200 percent since 2009. They can also be bought at certain auctions.
Though the initial investment may be large, diamonds are easily liquidated and can be fast cash in an emergency. They also add diversity to a portfolio.

About the Author:Julia Lawrence thoroughly enjoys spending time researching and writing about diamonds, jewelry and pop culture! When she isn't hard at work writing blog posts for The Diamond Lining, she spends her time wither with an absolutely adorable Mini Golder Retriever: Jake, and her husband: Mr. Julia Lawrence.
Follow Jules: LinkedIn, Google+